Cordero warns of disaster if taxes lowered

In a formal appearance before Congress to defend the Government’s 2011 Budget, Finance Minister Ernesto Cordero warned of a repeat of past economic crises if the PRI proposal to cut value added tax rates passed. “To reduce revenues while at the same time increasing the deficit, would create the risk of falling into an unsustainable debt situation that could cause another crisis of internal origin, such as occurred in 1976, 1982 and 1986,” he said. “To weaken the tax base in this moment would be irresponsible, at the time when we are emerging from the need to have to borrow. It is inconsistent when we are ending the need to borrow to lower taxes. Never in the history of the country has a reduction in tax rates increased tax revenues.”(Universal 9/15)